Subdued PH trading seen

The local stock index is seen testing its resilience above 7,200 this week as the country conducts its midterm elections alongside a new public listing by Friday.

Last week, the main index gained 0.65 percent to close at a new all-time high level of 7,262.38 on Friday.

Joseph Roxas, president of Eagle Equities, said trading this week would likely be more subdued with a probability of the index staying flat. “The election has nothing to do with it,” Roxas said, adding that the initial public offering of Asia United Bank had sapped some liquidity. AUB is embarking on an IPO worth P8.36 billion and is listing on the PSE on Friday.

“Participants will re-check the PSEi’s staying power above the 7,200 level this week, trailing progression from the peaceful conduct of the local and national elections,” said Freya May Natividad, an analyst at 2TradeAsia.com. “Most are expected to reposition, ahead of an anticipated rally back to the 7,284 previous (intraday) high.

“Although participation might moderate ahead of Fed officials’ discussion on how aggressive their sequel monthly bond purchases would be, several are skewed on actions that would seize on any temporary lull to accumulate good contenders for 2013-2014,” she said.

Immediate support is seen at 7,200-7,230 and resistance at 7,280-7,350.—Doris C. Dumlao